The Supervision Of Credit Default Swaps Through "UBS V. Paramax"

This article aims to explore the balance between finance innovation and legal regulation from the standpoint of state supervision through "UBS v. Paramax",which is the first case concerning Credit Default Swaps(CDS) after financial crisis, in order to provide legal advice for the services of CDS developing in our country. CDS is essentially contractual relationship and it is suggested that the mode of approval market access should be established so as to realize the affirmative way of control by a transition of market access from benefit theory to harmless theory. The parties of CDS transaction should be confirmed in terms of quality and quantity from the viewpoint of capital regulation and profession to guarantee their capacity to enter into as well as perform the contract. Information symmetry is beneficial to the establishment of a transparent market. Besides, the category and requirement of information disclosure in CDS, and the disclosure responsibilities of central bank, bank regulatory commission and securities regulatory commission should be definite.